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Petrotrin update: now Trinidad Petroleum Holdings Ltd

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Re: Petrotrin update

Postby kstt » December 15th, 2017, 9:42 am

Why was AV Gas paid in $US when it is a local company and we have a forex shortage problem??

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Re: Petrotrin update

Postby Redman » December 15th, 2017, 12:01 pm

All oil is purchased in USD...and paid for in USD.

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Re: Petrotrin update

Postby car » December 15th, 2017, 12:11 pm

Watch how long they discover this issue and the man still woking.
Wouldn’t be surprised if they give him $5M and tell him resign. And then burry the whole fiasco.

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Re: Petrotrin update

Postby Pointman-IA » December 15th, 2017, 12:14 pm

Redman wrote:All oil is purchased in USD...and paid for in USD.
Try paying for oil in Dinars ( Libya was invaded) and bitcoin gold (more venezolanas coming closer to Petrotrin outlets).

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Re: Petrotrin update

Postby airuma » December 15th, 2017, 1:24 pm

Redman wrote:All oil is purchased in USD...and paid for in USD.

Since I was a teenager I was told that we can only own the top 6ft of soil of any land we purchase in Trinidad and Tobago. I was also told this by a university lecturer. I have never researched it myself, but the understanding is that individuals do not have the rights to oil.
Is this situation different with AV? Do they sell the oil or the service to extract it? If they sell the oil, do they own it?
I know WASA owns all of the water in Trinidad and Tobago, rain, drains, rivers etc. I'm thinking something similar may apply to petrotrin.

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Re: Petrotrin update

Postby Redman » December 15th, 2017, 1:50 pm

airuma wrote:
Redman wrote:All oil is purchased in USD...and paid for in USD.

Since I was a teenager I was told that we can only own the top 6ft of soil of any land we purchase in Trinidad and Tobago. I was also told this by a university lecturer. I have never researched it myself, but the understanding is that individuals do not have the rights to oil.
Is this situation different with AV? Do they sell the oil or the service to extract it? If they sell the oil, do they own it?
I know WASA owns all of the water in Trinidad and Tobago, rain, drains, rivers etc. I'm thinking something similar may apply to petrotrin.


Im 95% sure the below is accurate-

There are 2 types of arrangements that exist in terms of oil.

The old way was that a person owned the land and the resource...there are few of these relationships that remain...they sell the oil to Petrotrin under I believe different terms.
Ive never seen the contract-but Ive worked with an operator who says he has.
These owners are generally dying out and in some cases have arrangements with 3rd parties to bring oil to surface.

The more common and more modern arrangement falls within what you described....The GORTT owns all the resources sub surface and allows extraction by license.

These are known as Farm Out,Lease Out and Profit Sharing Contracts

Farm Out-this block is x acres-drill and work over best as you can.Your cost with oversite from Petrotrin/ministry.
New Wells/Reservoirs can only be drilled with approvals

Lease out-here is x WELLS....produce/workover these and produce as much as you can for the term of contract.


PSC- this field is producing X BOPD.
Anything above X is shared on agreed to terms.

In all contracts...
Petrotrin is the sole legal purchaser of oil.
Its paid for in USD

A local barrel typically cost the country about half of an imported barrel.

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Re: Petrotrin update

Postby airuma » December 15th, 2017, 2:01 pm

"The GORTT owns all the resources sub surface and allows extraction by license"

So GORTT can be purchasing something that they own?

Is it unreasonable to "force" LOCAL lease operators to accept payment in TTD, even if the law needs to be changed to do this?

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Re: Petrotrin update

Postby Redman » December 15th, 2017, 4:38 pm

airuma wrote:"The GORTT owns all the resources sub surface and allows extraction by license"

So GORTT can be purchasing something that they own?

Is it unreasonable to "force" LOCAL lease operators to accept payment in TTD, even if the law needs to be changed to do this?


There is nothing nefarious going on.

The govt owns the resource.
The govt pays a producer for the oil brought to surface, which Petrotrin has had issues doing in a cost effective manner.

So they say that Petrotrin buying the oil...when in fact what they are doing is paying an operator to bring it to surface and deliver it to their fiscalization point.

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Re: Petrotrin update

Postby Pointman-IA » December 15th, 2017, 7:44 pm

Redman wrote:
airuma wrote:"The GORTT owns all the resources sub surface and allows extraction by license"

So GORTT can be purchasing something that they own?

Is it unreasonable to "force" LOCAL lease operators to accept payment in TTD, even if the law needs to be changed to do this?


There is nothing nefarious going on.

The govt owns the resource.
The govt pays a producer for the oil brought to surface, which Petrotrin has had issues doing in a cost effective manner.

So they say that Petrotrin buying the oil...when in fact what they are doing is paying an operator to bring it to surface and deliver it to their fiscalization point.
Certain fields were run down to make it favourable to friends and families of the political directorate.

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Re: Petrotrin update

Postby Redman » December 15th, 2017, 7:56 pm

Well running down a field means that it needs significant upgrade or maintenance to get back to optimum state.

That's to the friends and family account.

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Re: Petrotrin update

Postby Pointman-IA » December 15th, 2017, 8:35 pm

Redman wrote:Well running down a field means that it needs significant upgrade or maintenance to get back to optimum state.

That's to the friends and family account.
Follow the money and see where it leads you.

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Re: Petrotrin update

Postby airuma » December 18th, 2017, 11:42 am

Redman wrote:
airuma wrote:"The GORTT owns all the resources sub surface and allows extraction by license"

So GORTT can be purchasing something that they own?

Is it unreasonable to "force" LOCAL lease operators to accept payment in TTD, even if the law needs to be changed to do this?


There is nothing nefarious going on.

The govt owns the resource.
The govt pays a producer for the oil brought to surface, which Petrotrin has had issues doing in a cost effective manner.

So they say that Petrotrin buying the oil...when in fact what they are doing is paying an operator to bring it to surface and deliver it to their fiscalization point.

So your point about all oil is purchased in USD....... they're not selling oil so why must the payment be in USD?

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Re: Petrotrin update

Postby Redman » December 18th, 2017, 12:07 pm

The refinery will sell the output in usd.

From the producers POV..
The main equipment inputs are USD based.
In many cases international labor costs impact local HR inputs.
Pipe,Rigs,Replacement parts,down hole tools etc etc etc all USD priced.

A locally produced BBL of oil cost about 50%...but also generates USD from refined products sold.

Many of the producers are financed from abroad-they have remittances to make...

We would not attract foreign investment if the operators had to run the forex risk.
And I just want to point out the total failure of the local financial sector in terms of their support of the local oil producing sector.
oil is international business. USD is the currency of choice.
For now at least

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Re: Petrotrin update

Postby zoom rader » December 18th, 2017, 12:20 pm

airuma wrote:"The GORTT owns all the resources sub surface and allows extraction by license"

So GORTT can be purchasing something that they own?

Is it unreasonable to "force" LOCAL lease operators to accept payment in TTD, even if the law needs to be changed to do this?

Not really true as there are cases where :

If you have lands that was brought under king George V and it was passed on from family to family and not sold where a new deed was made out you own all the mineral rights.

The deed has to state that the owner has the rights to minerals which includes water. Hence the government does not own the oil or water on your land.

Only if the land was sold then the rights reverts back to the government .

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Re: Petrotrin update

Postby K74T » December 22nd, 2017, 9:05 pm

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Re: Petrotrin update

Postby matix » December 22nd, 2017, 9:52 pm

^^^^
Finally some good news

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Re: Petrotrin update

Postby Specialist Baboons » December 23rd, 2017, 6:46 am

Petrotrin terminates A&V lease
Baksh mulls $1bn lawsuit


Gail Alexander
Published:
Saturday, December 23, 2017

The gloves are off - on all sides.

Attorney for A&V Oil and Gas CEO Hannif Nazim Baksh, Ramesh Lawrence Maharaj SC, is challenging a decision by state-owned Petrotrin yesterday to terminate the contract of the lease operator.

After Petrotrin announced it had given the operator notice of termination of contract, Maharaj said he’d written to Petrotrin demanding a response by January 2, 2018.

“If none is forthcoming, we have the option to go to court for an injunction to block their termination decision. A breach of contract can result in Petrotrin paying over $1 billion in damages,” Maharaj added.

Petrotrin’s termination and Maharaj’s reaction are the latest developments in the company’s alleged “fake oil” matter which arose several months ago.

An August Petrotrin audit report had alleged volume discrepancies occurred between oil production and actual receipts. An employee and lease operator fell under scrutiny, after it was alleged the state-owned company overpaid $80 million for oil which wasn’t supplied.

Petrotrin’s board subsequently commissioned external forensic audits by Kroll Consulting of Canada and global oil and gas consultants Gaffney Cline, which confirmed the internal findings.

After that, Petrotrin employee Vidya Deokiesingh - the ruling People’s National Movement’s general election candidate for Siparia - was placed under disciplinary proceedings two weeks ago.

Further action continued rolling yesterday, when Petrotrin’s board announced - via statement - that the company has given notice of the termination of contract to the lease operator “associated with the discrepancies in reported oil production and actual receipts” revealed by its Internal Audit Department. Petrotrin noted its Audit Department’s findings were confirmed by Kroll Consulting.

The statement added, “Another report, from global oil and gas consultants Gaffney Cline, had also advised that the reservoir from which the oil had been produced was incapable of yielding the reported volumes. Petrotrin gave written notice of termination to the lease operator this week after it communicated its findings to the operator and gave it an opportunity to respond.”

Petrotrin chairman Wilfred Espinet said while some commentators have expressed concern at the rate of Petrotrin’s progress in the matter, it was critical the board act only after careful consideration of all relevant matters, including the response of the lease operator to the findings.

“Adherence to process is the most important component of this exercise. We’re being guided by expert counsel, and are committed to ensuring that we do things in accordance with proper procedure,” Espinet added.

However, Maharaj said his firm - which had up to yesterday to respond to the termination notice - wrote to Petrotrin indicating the company’s decision was not being accepted.

“That is because they have no legal or factual basis for termination of the contract, as they haven’t produced any evidence to show A&V was involved in any wrong-doing in the supply of oil. They’ve also breached the contract by not acting in good faith, since they have refused to give us a copy of the Kroll and Gaffney Cline reports on which they based their decision,” Maharaj added.

Maharaj said his company had now triggered the dispute resolution mechanism which requires Petrotrin to meet him to further discuss the matter on January 2 at Petrotrin headquarters.

“We indicated to them all of this is without prejudice to our right to contend and we’re entitled to get an injunction from the High Court against them to restrain them from acting on their decision to terminate the contract,” Maharaj said.

“We indicated their decision is in violation of good faith and natural justice and we asked them - under the contract - to comply with the requirements of conciliation and mediation. If they don’t, we’re entitled to go to court to compel them to obey under the terms of the contract.”

Maharaj said his client is also demanding the money which Petrotrin owes A&V for supply of oil from August - when the audit report was done - to date.

“That is to the tune of $70 million. A breach of contract can a result in Petrotrin paying over $1 billion in damages because the investment of our client was almost $1 billion.”

AG must follow money now - Lee

Opposition whip David Lee said yesterday that Petrotrin’s decision to terminate the A&V Oil and Gas contract was vindication of Opposition statements on the matter, adding the Attorney General must now “follow the money” in the matter to recoup taxpayers’ funds involved.

“This issue is live, real and fresh, an opportune time to ‘follow the money.’ We also expect the company’s report to be sent to the appropriate legal directions for follow-up,” Lee told the T&T Guardian.

“And since Minister (Franklin) Khan said the company employee allegedly cited in the audit report was subject to disciplinary proceedings, the public should be given details of this, when it will be completed and if it has, what’s the outcome.”

Energy Minister Franklin Khan didn’t reply to calls yesterday on what action would transpire following Petrotrin’s decision to terminate the operator’s contract. But Khan recently said Petrotrin had engaged senior counsel to assist after the Kroll report, adding the matter was being pursued by Petrotrin’s board and an official report hadn’t been referred to the police. Khan also said he was awaiting outcomes and recommendations from the probes to determine what action was required of him as minister.

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Re: Petrotrin update

Postby Pointman-IA » December 23rd, 2017, 10:15 am

Jingle bells.. jingle bells.

Someone going to tell.

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Re: Petrotrin update

Postby The_Honourable » December 23rd, 2017, 12:08 pm

1 billion? Ramesh wukking for sure.

But then again, he may not have to work that hard because the AG can always drop the case like what he did for Malcolm Jones. All the bad media Baksh get for the past few months, he will make it up in the end with taxpayers money and laughing to the bank.

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Re: Petrotrin update

Postby toyota2nr » December 23rd, 2017, 1:11 pm

Redman wrote:Examine,Assess.
No jurisdiction to implement or influence.
This is over site with zero authority over the operational decisions into the company
Information is gathered in a public forum

The way it is dealt with is that her shareholding would have been declared.-To the ICC,the JSC and Petrotrin would have been very aware since it would be in their possession.
And if in the eyes of the Board, or the JSC a conflict AROSE she would either be precluded from the deliberations, or step down.

I dont believe that her shareholding was a conflict in the JSC...and maybe she brought a level of experience to the JSC that would help with their understanding of the biz.

The JSC had NOTHING to do with the uncovering of the false production numbers.

So this blew up.

The company was following the right procedure here.
Internal Audit after the discrepancy was found(2016)-the employee was moved, production dropped.
Results submitted.
Legal Advice sought.(this is where KPB came in)
Second external audit to confirm first.
Action.

You are free to believe anything you want.
The system all over the world understand that people will have pre existing relationships that bring them into possible conflicts...as things change.There are procedures that manage this.
Especially in a population as small as ours.

to be clear-I am not defending HER.
I just think that her shareholding does not necessarily put her in a conflicted position with her position on the JSC.


Unfortunately you are incorrect sir. If the function of the JSC is to examine and assess as you stated then is it not reasonable to assume that she can give an assessment in favor of her father's company even when the facts state otherwise?

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Re: Petrotrin update

Postby pugboy » December 23rd, 2017, 1:32 pm

like you have the crystal ball

The_Honourable wrote:1 billion? Ramesh wukking for sure.

But then again, he may not have to work that hard because the AG can always drop the case like what he did for Malcolm Jones. All the bad media Baksh get for the past few months, he will make it up in the end with taxpayers money and laughing to the bank.

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Re: Petrotrin update

Postby Sundar » December 23rd, 2017, 1:52 pm

zoom rader wrote:
airuma wrote:"The GORTT owns all the resources sub surface and allows extraction by license"

So GORTT can be purchasing something that they own?

Is it unreasonable to "force" LOCAL lease operators to accept payment in TTD, even if the law needs to be changed to do this?

Not really true as there are cases where :

If you have lands that was brought under king George V and it was passed on from family to family and not sold where a new deed was made out you own all the mineral rights.

The deed has to state that the owner has the rights to minerals which includes water. Hence the government does not own the oil or water on your land.

Only if the land was sold then the rights reverts back to the government .

Aka "crown lands".

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Re: Petrotrin update

Postby airuma » December 23rd, 2017, 8:46 pm

A&V fired = new board doing a good job
A&V contemplating lawsuit = no admission of guilt by A&V
1 billion lawsuit = A&V lawyer possibly getting compensation for expenses that could not be covered by the public purse...
Nothing to rejoice about here!

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Re: Petrotrin update

Postby Redman » December 24th, 2017, 7:14 am

Toyota,
If the JSC was specifically looking into the block operators or the fake oil issue then I would agree.
Fully.

But the JSC was assembled before the AV issue.Therefore...there was no need to believe it would be looking into a specific issue involving her shareholding.

Again...the JSC had nothing to do with the fake oil.

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Re: Petrotrin update

Postby De Dragon » December 24th, 2017, 9:23 am

JUHN Scarfy and Arse-Wari go make this all disappear, and Baksh with his nasty, disgusting attitude, similar to his friend, will laugh all the way to the bank.

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Re: Petrotrin update

Postby vaiostation » December 24th, 2017, 9:44 am

Government need to move fast and send home all petrotrin temporary and casual staff to smokescreen this issue quickly...

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Re: Petrotrin update

Postby Redman » December 24th, 2017, 10:10 am

De Dragon wrote:JUHN Scarfy and Arse-Wari go make this all disappear, and Baksh with his nasty, disgusting attitude, similar to his friend, will laugh all the way to the bank.


That might be harder than you think.
This is now a aired issue.
So we know he was overpaid.
We know it was confirmed...or Petrotrin would not have terminated...ent they getting advised.

So somebody has to give up something.

If pressed properly...this is is tectonic.

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Re: Petrotrin update

Postby De Dragon » December 24th, 2017, 10:19 am

Redman wrote:
De Dragon wrote:JUHN Scarfy and Arse-Wari go make this all disappear, and Baksh with his nasty, disgusting attitude, similar to his friend, will laugh all the way to the bank.


That might be harder than you think.
This is now a aired issue.
So we know he was overpaid.
We know it was confirmed...or Petrotrin would not have terminated...ent they getting advised.

So somebody has to give up something.

If pressed properly...this is is tectonic.

Like Malcolm Jones? Like the gun chirren? Like Weavy and she 143K? Like Squeeze Bamsee and he 96K? Like Young Bronto and she 59K? Like Tightos Lester Henry? Like disgusting JUHN Scarfy and Emailgate?
Surely you jest!

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Re: Petrotrin update

Postby Specialist Baboons » January 8th, 2018, 6:17 pm


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Re: Petrotrin update

Postby vaiostation » January 8th, 2018, 8:35 pm

Wayyy... trying so hard to get in petro and now they going to mash them up...
Man kyah catch a break...

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